Net Spread. Subject to Section 4.3.6 and except as otherwise expressly provided in this Agreement, the net spread (the “Net Spread”) applicable for any Base Rate Borrowing Advance Tranche shall be as set forth in Schedule 4.2.3. With respect to the exercising of the First Option to Extend or Second Option to Extend, the Net Spread applicable for any Base Rate Borrowing Advance Tranche during such extended term period shall be determined by Lender in its sole discretion and communicated to Borrower (provided, that Lender will communicate indicative (but not final) Net Spreads for such extension period to Borrower at least 2 Business Days prior to the Scheduled Maturity Date, First Extended Maturity Date or Second Extended Maturity Date, as applicable). With respect to the exercising of an Expansion Option, the Net Spread applicable for any Base Rate Borrowing Advance Tranche for such expanded amount of the Sponsor Borrower Loan shall be determined by Lender in its sole discretion and communicated to Borrower and Sponsor (provided, that Lender will communicate indicative (but not final) Net Spreads for such expansion to Borrower and Sponsor at least 2 Business Days prior to the Expansion Option Date), and the final Net Spread for such expanded amount of the Sponsor Borrower Loan shall be blended together with the Net Spread then in effect as determined by Lender. Lender and Borrower shall evidence any new or blended applicable Net Spread pursuant to this Section 4.2.3, by executing a confirmation substantially in the form attached hereto as Schedule 2.3.
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Sources: Credit Agreement (Preferred Apartment Communities Inc), Credit Agreement (Preferred Apartment Communities Inc)
Net Spread. Subject to Section 4.3.6 and except as otherwise expressly provided in this Agreement, the The net spread (the “Net Spread”) applicable for any Base Rate Borrowing Advance Tranche shall be as set forth in Schedule 4.2.3. With respect to the exercising of the First Option to Extend or Second Option to Extend, the Net Spread applicable for any Base Rate Borrowing Advance Tranche during such extended term period shall be determined by Lender in its sole discretion and communicated to Borrower (provided, that Lender will communicate indicative (but not final) Net Spreads for such extension period to Borrower at least 2 Business Days prior to the Scheduled Maturity Date, First Extended Maturity Date or Second Extended Maturity Date, as applicable). With respect to the exercising of an Expansion Option, the Net Spread applicable for any Base Rate Borrowing Advance Tranche for such expanded amount of the Sponsor Borrower Loan shall be determined by Lender in its sole discretion and communicated to Borrower and Sponsor (provided, that Lender will communicate indicative (but not final) Net Spreads for such expansion to Borrower and Sponsor at least 2 Business Days prior to the Expansion Option Date), and the final Net Spread for such expanded amount of the Sponsor Borrower Loan shall be blended together with the Net Spread then in effect as determined by Lender. Lender and Borrower shall evidence any new or blended applicable Net Spread pursuant to this Section 4.2.3, by executing a confirmation substantially in the form attached hereto as Schedule 2.3.
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